The greenback has been holding in green territory for an eighth week in a row
The USD keeps advancing on Wednesday, refreshing multi-month highs just below the 105.00 figure, extending the recent ascent as risk aversion dominates global financial markets. During the previous session, the greenback briefly jumped local highs around 104.90 before retreating marginally. As such, the buck stays slightly positive, holding in green territory for an eighth week in a row. The dollar now holds marginally below 105.00, looking ready to extend its ascent in the near term. On the downside, the immediate support now arrives around 104.30, followed by the 103.00 zone. A wider technical picture stays positive as well. Should the DXY see a more intense bullish pressure, a break above the 105.00 zone would open the way towards fresh March highs. Meanwhile, EURUSD slightly turned positive on Wednesday, but still holds below the key SMAs that turned back into resistance levels after last week’s sell-off. The pair is changing hands around 1.0733 as of writing, up 0.13% on the day.
The cable has been sliding for the second session in a row on Wednesday. During the previous session, the pair dipped to June lows around 1.2530 before bouncing partially. Since then, the pair has settled around 1.2550, looking vulnerable as the cable is yet to regain the 20-DMA, today at 1.2665. In recent trading, the pair dipped to the 1.2543 area and was last seen clinging to the lower end of the range. The daily RSI looks downbeat in neutral territory, suggesting the pair could see more losses in the near term. In recent trading, GBPUSD was changing hands around 1.2549, down 0.1% on the day. On the downside, the immediate significant support is now represented by the 1.2500 zone. On the upside, a decisive break above 1.2600 would pave the way to a more sustained recovery. In a wider picture, the pound has been staying within a bullish trend since last September.
The USDJPY stays strong these days, trading in negative territory on Wednesday after peaking at fresh November highs around 147.80 earlier in the day. The pair has retreated from the peaks while staying elevated in recent trading. In European deals on Wednesday, USDJPY holds above the 147.00 mark that now represents the immediate support. As the pair still stays above the 20-DMA, downside risks remain limited in the near term. The dollar was last seen changing hands around 147.35, down 0.24% on the day. Now, the greenback needs to retest the 147.80 mark in order to retarget fresh multi-month highs. The daily RSI turned slightly lower in neutral territory, suggesting the dollar could take a pause in the immediate term before rallying to fresh tops. On the hourly timeframes, the technical picture has deteriorated somewhat, with downside risks persisting as prices are now holding below the key SMAs while the RSI is pointing lower in neutral territory.
The price of gold looks relatively steady on Wednesday after a two-day sell-off triggered by a stronger US dollar. During the previous session, the precious metal extended losses to the $1,925 area for the first time in a month. Earlier today, XAUUSD briefly fell to $1,922 before bouncing back into positive territory. Still, the bullion lacked the momentum to regain the directionless 55-DMA that deterred bulls. Should the pressure reemerge any time soon, the bullion could even threaten the 20 and 200-DMAs that converge around $1,915. Gold was last seen changing hands around $1,927, up less than 0.1% on the day. On the weekly timeframes, the technical picture has deteriorated somehow as the metal is back distancing itself from the 20-SMA that capped gains last week. On the upside, the immediate target is now represented by the $1,930 region, followed by the $1,952 level where the 100-day SMA arrives. On the four-hour charts, the XAUUSD pair has settled below the key SMAs while the RSI has corrected higher, painting a mixed technical picture.